How is the Dividend yield looking for these stocks - HVN, JBH, SGP, TLS, DDR?

  • Sep 16, 2020 AEST
  • Team Kalkine
How is the Dividend yield looking for these stocks - HVN, JBH, SGP, TLS, DDR?

Summary

  • During these unprecedented times, most companies cancelled or deferred their dividend. However, some players continued to provide dividend and have come under the spotlight.
  • Harvey Norman reported a 19% growth in its NPAT and declared a dividend of 24 cents. The result was driven by the strong support received from the customers for its brands.
  • JB Hi-Fi delivered strong sales and earnings in these challenging times. It announced a dividend of 189 cents.
  • Telstra’s Total Income, NPAT and EBITDA were in line with market expectations. It declared FY2020 dividend of 16 cents.

Amid the uncertainty due to COVID-19, most companies, that earlier provided regular dividends, have either cancelled their dividend or deferred them. However, a few companies have managed to deliver dividends despite the challenging environment.

INTERESTING READ: How Dividends Will Pan-Out for Listed Investment Companies in 2020?

A dividend is a part of a Company’s earnings which it provides to its shareholders. In times when the market is highly volatile, the Companies still providing dividends have become a source of attraction amongst the market participants. A dividend yield indicates the amount paid in dividends relative to a Company’s stock price.

In this article, we would look at a few dividend-paying companies and their respective dividend yields.

To know more about the impact on COVID-19 on dividend payouts, do watch: COVID-19 sparked a Dividend.

Harvey Norman Holdings Limited (ASX:HVN)

ASX 200-listed Company, Harvey Norman Holdings Limited’s principal activities include integrated retail, property, franchise, and digital enterprise.

On 28 August 2020, Harvey Norman released its FY2020 results for the period ended 30 June 2020 and reported a profit after tax growth of 19.4%.

A Quick Look at FY2020 Result:

Image Source: HVN's Report

As per Gerry Harvey, the Chairperson of Harvey Norman, FY2020 was a challenging year, driven by the drought and bushfires last summer along with the ongoing COVID-19 impact. However, Harvey Norman’s customers remained associated firmly with the brand.

As the Company deals in the lifestyle/home retail space, the customers were supportive of the shopping experience, openness and easy parking at the physical franchised complexes and stores. Further, the customers were able to connect to the brands digitally as well as through convenience of home delivery and click and collect.

The result delivered by the Company reflects the strength of the model. The balance sheet of the Company is strong, supported by real property assets and a strong working capital position.

Stock Information:

Harvey Norman share price stood at A$4.365, up 2.706% on 16 September 2020 (at 1:40 PM AEST). The Company has a market capitalisation of A$5.3 billion, with 1.25 billion outstanding shares. HVN has an annual dividend yield of 7.06%.        

JB Hi-Fi Limited (ASX:JBH)

ASX 200 listed Company, JB Hi-Fi Limited is a specialty retailer of home consumer products with specialisation in consumer electronics, software, whitegoods, and appliances.

On 17 August 2020, JBH released its FY2020 results, reporting an 11.6% growth in its total sales. Despite challenging times, the Company delivered strong sales and earnings. JB Hi-Fi provided its customers with the products they needed as most of the time was spent at home by engaging themselves in working, learning, and seeking entertainment.

A Glance at FY2020 Results:

Group Model:

Five unique competitive advantages support the Company’s group model. These are:

  • Scale
  • Low-Cost Operating Model
  • Quality Store Locations
  • Supplier Partnerships
  • Multichannel Capability

Stock Information:     

JB Hi-Fi share price stood at A$48.270, up 3.229% on 16 September 2020 (at 1:40 PM AEST). The Company has a market capitalisation of A$5.37 billion, with 114.88 million outstanding shares. JBH has an annual dividend yield of 4.04%.

GOOD READ: Dividend Stocks to Ascertain Regular Income

Stockland (ASX:SGP)

ASX 200 listed Company, Stockland is amongst the largest diversified property groups in Australia. Stockland belongs to the real estate sector, which was amongst the worst hit sector amid COVID-19 crisis. However, the Company was able to tackle the situation proactively and decisively, reacting to these unprecedented events to safeguard the business as well as place itself well position for the future. The Group continued to execute the group strategy for the entire year amid the challenging situation.

Image Source: Stocklands Report

The result delivered by the Company during FY2020 reflects the benefits derived from the diversified portfolio. Proactive steps were taken to reduce the costs, curb non-essential expenses, boost liquidity and increase gearing as a result of strong cash flow performance.

Efforts were made to rebalance the portfolio to provide future growth and provide steady long-term margins.

The capital was assigned strategically towards Workplace and Logistics via acquisitions that more than doubled the development pipeline to A$5.5 billion. It also increased the weighting to 29% of portfolio asset value on a proforma basis, after altering for post balance date transactions.

Stock Information:

Stockland share price stood at A$3.725, down 0.401% on 16 September 2020 (at 1:40 PM AEST). The Company has a market capitalisation of A$8.92 billion, with 2.38 billion outstanding shares. SGP has an annual dividend yield of 6.44%.

DO READ: Security of Dividends for Investors Looking at Real Estate Shares: LLC, GPT, DXS, MGR, SGP    

Telstra Corporation Limited (ASX:TLS)

ASX 200 listed Company, Telstra Corporation Limited is a provider of telecommunications and information services confirmed its Total Income, NPAT and EBITDA were in line with market expectations. The Company witnessed strong growth in the numbers of mobile services. TLS made good progress on T22 strategy and is more than halfway through. The final dividend declared by the Company was 8 cents, thus, bringing the total dividend for FY2020 to 16 cents per share.

Image Source: TLS's Report

FY2020 Highlights:

  • Helped ~2.6 million customers remain connected throughout COVID-19.
  • There were over 4 million customers on TLS’s new plans.
  • TLS noted over 4.3 million active My Telstra app users.
  • More Than 2 million Telstra Plus members and more than 4.3 billion points redeemed.
  • During the bushfire crisis, TLS supported the community by allowing 2.5 million free calls using Telstra payphones.
  • Partnered with five major universities to build skills for the future.

Stock Information:

Telstra share price stood at A$2.855, up 1.241% on 16 September 2020 (at 1:40 PM AEST). The Company has a market capitalisation of A$33.54 billion, with 11.89 billion outstanding shares. TLS has an annual dividend yield of 3.55%.           

Dicker Data Limited (ASX:DDR)

S&P/ASX 300  listed Company Dicker Data Limited is known as the Australian ICT industry's most trusted advisors. DDR distributes software, ICT hardware, IoT and cloud-based solutions to reseller partners.

On 28 August 2020, Dicker Data Limited released its half-yearly results for the period ended 30 June 2020. 1H FY2020 has witnessed an increase in revenue at 18.1%, supported by growth in established as well as new vendors. A portion of the revenue growth is attached to the migration to the remote workforce, increase in demand for virtual capabilities plus enhanced digital transformation of businesses.

A Quick Look at FY2020 Results:

  • Revenues from ordinary activities improved by 18.1% to A$1,006.138 million as compared to the previous corresponding period.
  • Net profit before tax for 1H FY2020 increased by 30.2% to A$42.047 million.
  • Net profit after tax attributable to members was up 23.6% to A$29.390 million.
  • Total dividend announced for the period was 75 cents, paid on 01 September 2020.

Stock  Information:

Dicker Data share price stood at A$7.570, up 2.575% on 16 September 2020 (at 1:40 PM AEST). The Company has a market capitalisation of A$1.27 billion, with 172.09 million outstanding shares. DDR has an annual dividend yield of 4.47%.        

 


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There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
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